Leuthold v. Fairchild

27 N.W. 503, 35 Minn. 99, 1886 Minn. LEXIS 63
CourtSupreme Court of Minnesota
DecidedMarch 31, 1886
StatusPublished
Cited by20 cases

This text of 27 N.W. 503 (Leuthold v. Fairchild) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leuthold v. Fairchild, 27 N.W. 503, 35 Minn. 99, 1886 Minn. LEXIS 63 (Mich. 1886).

Opinions

Gilfillan, C. J.

After the issues were made in this case the plaintiffs procured, on motion, from the court below, an order requiring the defendant Fairchild to make answer to certain written interrogatories prepared by plaintiffs for that purpose; The making of this order is alleged as error. The interrogatories were answered, but no use was made of the answers, — they were not introduced on the trial; so that, as that proceeding did not in any way affect the judgment •appealed from, the error was without prejudice so far as concerned this appeal. We deem it proper, however, to say that tnere is no .authority for such an order. The statute enables a party, by verifying his own pleading, to compel his adversary to answer or reply to it under oath, and to compel him to exhibit for inspection books, papers, and documents in his possession, and also to appear and testify m his behalf as a witness. These are the only means that the statute has provided to compel disclosures by the opposite party in lieu ■of the means which the system of pleading in the former court of chancery afforded by interrogatories appended to the bill or answer.

As to the merits, the facts, briefly stated, are: ' Up to June 2, 1883, one John Young owned a grain warehouse or elevator, at Has-son, and was engaged in the business of receiving into it, for storing, wheat of all grades from others, for which, as received, he issued to the parties depositing wheat the usual wheat warehouse receipts or tickets; and was also engaged in buying wheat on his own account, —all the wheat so deposited by others, and that bought by him, being commingled in the warehouse according to its grade, test, and •condition; and he also bought up, as he had opportunity, the receipts or tickets so issued by him; that for some time prior to said June 2d ihe was accustomed to ship by railroad to market, at Chicago, and [106]*106there to sell, the wheat in his warehouse and so commingled, both, that owned by himself and that held in store for others. The business of shipping it was conducted in this way: He placed the wheat, on board the cars at Kasson; received from the railway company the usual bills of lading for it, in which the defendant the bank was. named as consignee; drew his drafts for round sums in favor of the-bank on the parties to whom the wheat so shipped was to be forwarded; procured the bank to discount the drafts, delivering them to it with the bills of lading. The bank thereupon, by defendant. Fairchild, its cashier, indorsed the bills of lading in blank, indorsed the drafts to its correspondent at the place of destination of the wheat, and forwarded the bills and drafts attached together to such correspondent, with instructions to present the drafts for payment, and, if paid, to deliver them with the bills to the drawee in the drafts; and it was so done. The bank, through its officers, had, at all times, knowledge that Young was receiving wheat for storing and issuing' receipts or tickets therefor, and mingling such wheat with that purchased by himself; but had no actual knowledge or notice of the actual condition of the storage accounts, or of the amount of the outstanding receipts or tickets, or of the amount of wheat in the elevator,, or of the financial condition of Young.

Bach of the plaintiffs had deposited wheat for storing in said warehouse, and received receipts or tickets therefor. After such deposits, so much wheat was taken out, shipped, and disposed of in the manner aforesaid, that on said second day of June there was not enough remaining to meet all such receipts or tickets outstanding and held, by the plaintiffs and others than Young. On that day Young was insolvent, and made an assignment for the benefit of his creditors to defendant Fairchild, who accepted the trust, and took possession of the warehouse, and all the wheat remaining in it. Afterwards each of the plaintiffs presented to Fairchild his receipts or tickets for wheat,, and demanded from him the amount and quality of wheat called for by them, at the same time tendering the amount due thereon for-storage; and without taking any exception to the form or manner of' such demands, he refused to comply with them. During the times aforesaid one John Fern was the agent and wheat inspector of Young,. [107]*107and assisted him in operating said elevator, and managing the b ness thereof, and in all the foregoing transactions.

On these facts (stated much more in detail in the findings of th court) the court below found as conclusions of law — First, that the refusal of Fairchild to deliver, on the demands made upon him, the part of the wheat then in his possession to which each of the receipts or tickets presented to him was entitled, amounted to a conversion thereof; second, that the acts of Fairchild, the bank, Young, and Fern, in the matter of shipping and disposing of the wheat as here-inbefore recited, amounted to a conversion by them of so much of said wheat as was required to meet the outstanding receipts or tickets, after applying the wheat on hand to that purpose; third, and that the bank and Fern, each of whom had receipts or tickets for wheat deposited, were not entitled to share in the wheat on hand.

The first of these conclusions is right. The objection made to it is that the demand was not good, because, as is claimed, it was for more than the ticket-holder was entitled to of the wheat then in the hands of Fairchild; that it was for the whole amount that each ticket called for, when it should have been only for the proportionate share of the wheat on hand which belonged to such ticket. But it was the best demand that the ticket-holders could make. They could not b,e, expected to know the state of the warehouse accosts FiEt&v much wheat was on hand; and what amount of receipts or tickets were outstanding against it, and entitled to share in it. That is for the warehouseman to know when he is called on to deliver the wheat upon the tickets, which are prima facie entitled to all they call for. If, by reason of having just come into possession, Fairchild did not know, he would have been entitled, had he asked it, to a reasonable time to ascertain the share due on each ticket. But he unqualifiedly refused without asking for time. This constituted a conversion of the wheal] on hand that belpnged.to the tickets presented. I

No question is made that as to Young the second conclusion is right. As to the wheat covered by this conclusion, the bank and Fairchild, who .q,cted as its cashier and agent, stand on the same footing. The question as to their liability is of great practical importance. If banks and bankers cannot take security through the bills of lading [108]*108yon grain shipped, for the advances made by them to the shipper, hot meddling with the grain itself, without becoming liable as for the conversion of the grain in case the title of the shipper fails, the risk attending such advances will be so great as will tend to deter parties from making them; and we apprehend that thereby the business of shipping grain to market will be seriously interfered with.

•As we understand the proposition of the respondents, — and the conclusion of the court below cannot be sustained by any other,— it is in effect this: that the bank being named as consignee in the bills of lading, its indorsement and delivery of them to the parties in Chicago, upon receiving the amounts of the drafts, was a sale of the wheat by it to those parties, and consequently a conversion. It is not necessary to decide, and we do not decide, whether, had the acts of the bank amounted to a sale, it would have been liable for a conversion.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. Matthews
139 F. Supp. 683 (N.D. California, 1956)
First National Bank v. Siman
275 N.W. 347 (South Dakota Supreme Court, 1937)
Northwestern Upholstering Co. v. First National Bank & Trust Co.
258 N.W. 724 (Supreme Court of Minnesota, 1935)
Marshall v. Rowe
254 N.W. 480 (Nebraska Supreme Court, 1934)
Hoven v. McCarthy Brothers Co.
204 N.W. 29 (Supreme Court of Minnesota, 1925)
Nieter v. McCaull-Dinsmore Co.
199 N.W. 85 (Supreme Court of Minnesota, 1924)
Kean v. National City Bank
294 F. 214 (Sixth Circuit, 1923)
Ashcraft v. Tucker
215 P. 877 (Supreme Court of Colorado, 1923)
Norton v. Orendorff
67 So. 683 (Supreme Court of Alabama, 1914)
Riverside Portland Cement Co. v. Von Hamm-Young Co.
21 Haw. 727 (Hawaii Supreme Court, 1913)
Schall v. Northland Motor Car Co.
143 N.W. 357 (Supreme Court of Minnesota, 1913)
Varney v. Curtis
100 N.E. 650 (Massachusetts Supreme Judicial Court, 1913)
Walker v. First National Bank
72 P. 635 (Oregon Supreme Court, 1903)
Johnson v. Martin
59 L.R.A. 733 (Supreme Court of Minnesota, 1902)
Dolliff v. Robbins
86 N.W. 772 (Supreme Court of Minnesota, 1901)
Milton v. Johnson
47 L.R.A. 529 (Supreme Court of Minnesota, 1900)
Turnbull v. Crick
65 N.W. 135 (Supreme Court of Minnesota, 1895)
Brown v. James H. Campbell Co.
44 Kan. 237 (Supreme Court of Kansas, 1890)
Hall v. Pillsbury
7 L.R.A. 529 (Supreme Court of Minnesota, 1890)
Fern v. Leuthold
39 N.W. 399 (Supreme Court of Minnesota, 1888)

Cite This Page — Counsel Stack

Bluebook (online)
27 N.W. 503, 35 Minn. 99, 1886 Minn. LEXIS 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leuthold-v-fairchild-minn-1886.